The word “allocation” is frequently used while discussing managing bitcoin holdings. An example of a crypto asset allocation would be allocating a specific percentage of your portfolio to Bitcoin and various alternative cryptocurrencies.

In the blockchain world, crypto businesses must choose how to distribute their tokens and how much money they will spend overall, which often includes marketing, software development, and running costs. Many blockchain projects also have their foundations and treasuries, each with a unique allotted token. Additionally, it is common for blockchain companies to provide early team members a certain percentage of tokens with the restriction that they cannot sell them for a predetermined amount of time.

Investors have the choice to receive allocations throughout various investment rounds. As projects typically dedicate a substantial number of tokens to this auction as a courtesy of their initial investments, early investors may benefit from private sale rounds. In this case, each of these investors would get a share of the total amount offered in that particular sale round.

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